Pitt Penn Holdings, Co. Inc. filed a third amended plan of reorganization and related disclosure statement in the US Bankruptcy Court on October 17, 2012. Under the amended plan, administrative claims and priority tax claims of $1 million will be paid in full in cash.

Allowed prepetition lender secured claims of $4.81 million will be paid in full from sale of plant, cash and note. General unsecured claims of $9.3 million will be paid in full in cash and note. General unsecured claims of subsidiary debtors of $2 million will be paid 25% in cash and note.

Subordinate claims of approximately $40 million will be paid portion of the equity. The DIP loan claims will no longer be part of reorganization plan. The plan will be funded from cash in hand, sale of plant and property, issuance of equity and new notes.

The debtor filed modified third amended plan of reorganization and related disclosure statement in the Court on October 22, 2012, under the modified plan, administrative claims of $0.3 million, priority tax claims of $0.12 million and non tax priority claims of $0.05 million will be paid in full in cash. The existing equity interests of IEAM and non-IEAM will be retained by the respective shareholders. Prepetition lender secured claims of $4.81 million will be paid via transfer of plant of value of $2 and 65% of the balance in cash and 35% of the balance in note due on December 31, 2013.

General unsecured claims of $8.4 million will be paid 65% in cash and remaining 35% in notes. General unsecured claims of subsidiary debtors of $2.9 million will be paid 25% of the allowed amount in cash. Subordinated claims against IEAM of $43 million will be 99% of the claim in shares of reorganized debtor.

The debtor filed its second modified third amended plan of reorganization and related disclosure statement in the Court on December 5, 2012. Under the second modified plan, the prepetition lender secured claims of $4.81 million will be paid via transfer of plant of value of $1.83 million plus 65% of balance in cash and 35% of the balance in a note due December 31, 2013 bearing interest at the rate of 3% per annum. Subordinated claims against IEAM of $44.7 million will be paid 99% of the allowed claims in shares of the reorganized debtor.

The other terms and treatment of the other various claimant classes remains the same. The debtor filed modification to the third amended plan of reorganization on March 6, 2013. As per the filing, Prepetition Lender Secured Claims have been substituted by Omtammot Secured Claim.

The allowed amount of $1.83 million under such claims will be paid in full in cash. The holders of Allowed General Unsecured Claims of IEAM of $2.90 million will receive 65% payment in cash and remaining 35% in a note due on the one year anniversary of the effective date bearing interest at the rate of 3% pa. The holders of Allowed General Unsecured Claims of Subsidiary Debtors will receive 35% of such allowed amount in cash.

Allowed Omtammot Deficiency Claim of $2.98 million will be paid in full in cash. The holder of Allowed Zyskind Claim of $4.90 million will receive $3.19 million in cash and a promissory note in the amount of $1.72 million, with interest payable at 3% pa, if he votes in favor of the plan. Else such claim will be treated as subordinated claim.

All the debtors will continue to exist as separate legal entities post the effective date. The debtor filed modifications to the third amended plan of reorganization on March 13, 2013 and March 20, 2013. As per the filings there were no quantifiable changes in the plan.

The debtor filed plan supplement to the modified third amended plan of reorganization on April 22, 2013. As per the supplement, there were no quantifiable changes in the plan.